I was wondering if America is currently a good place to start investing in? A friend of mine sold her beautiful Victorian house for about 140k, and I was quite shocked. In Australia, where I live, I don’t think I’d be able to purchase any house with just 140k. So I was wondering, are all houses in America this cheap now? Or did she just get ripped off?
Hi mattsta
not really sure what you mean about your friend getting ripped off??
Should you be buying in US —- not unless you are an experienced investor in Australia, just my opinion.
Also, if you are not buying multiple properties and treat it as a business, don't do it.
At the moment with Aus$ falling back it just adds another layer of risk.
Food for thought.
Mattsta – you need alot more information to work out what your friend's deal was all about.
Can I suggest maybe studying a bit more about property investing generally before jumping into the (HUGE!) US foreclosure market?These forums are a great place to start!
Ziv Nakajima-Magen | Nippon Tradings International (NTI)
http://www.nippontradings.com
Email Me | Phone MeZiv Nakajima-Magen - Partner & Executive Manager, Asia-Pacific @ NTI - Japan Real-Estate Investment Property
worldinvestor wrote:Hi mattstanot really sure what you mean about your friend getting ripped off??Confusing statement as well
Should you be buying in US —- not unless you are an experienced investor in Australia, just my opinion.( Great advice) Do not buy over seas if you have not purchased at home ) Best to do things at home first then travel here to the states to try it ..Just increasing the risk factor for failure that much more but trying USA first. Not saying it can not be done. I love the international client but this statement makes alot of sense .
Also, if you are not buying multiple properties and treat it as a business, don't do it. Like the game of monopoly buying multiple homes.
At the moment with Aus$ falling back it just adds another layer of risk. Guess next few months we will be able to see how things are going .
Food for thought.
I'm an Aussie who now lives in the Detroit area. There are literally 10's of thousands of houses you could buy in the US for under $140K.
But I'd caution you not to buy anything without consulting someone with knowledge of the area you are planning on investing.
You can buy a house in Detroit for $100 (yes one hundred dollars), but you are probably overpaying. Plus, you need to know something of the safety of the area. There was the recent case of an Aussie landlord who was shot and killed in Detroit. Unlike Australia, there are some places you just don't go, let alone buy an investment property.Cheers,
NealeinMI
WI
Fine minds think alike
Appreciate you giving you point of view I believe the points are taken more seriously by a fellow countryman with experience
As well as a dash of reality, for every investor that started in the uUS with your methodical approach, there are 5 or 10 that just make the leap believing the promotors be it Aussie or US will take care of everything and investor will have to only put in minimum effortJlh
I love the American market, however I can currently make 40% on my money in Australia, frankly you will not those returns in the United States. So it is important to look at all options before in jump in blindly
Nigel Kibel | Property Know How
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I want some of that 40%
Do tell
Jay Private message otherwise I will be told I am self promoting lol
Nigel Kibel | Property Know How
http://propertyknowhow.com.au
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I think I can leave my e mail
I think before looking to invest anywhere you will need to understand the risk:
Currency Risk
Litigation Risk
Market Value
Insurance
Vacancy Costs
Maintenance Costs
Taxation
Entity Structure
Property ManagementBUT….. there is something that is even more important than the above issues before you should take your next step:
YOU and YOUR KNOWLEDGE will be the most underrated type of risk you will need to be aware of.
How much do you know about investing, accounting, leverage, property, the global markets, inflation, quantitive easing, population trends, local demography, valuing businesses, job numbers, debt…etc.
If you don’t know a lot about these issues, then I would suggest getting financially educated to minimise your own personal risk way before putting your hard earned money anywhere.
There are a lot of people who can fast track you on this journey if you choose the right team members.
Agree with Zmagen, you are in a great place to start learning
Hi,
I do not know what happened with the Victorian house.
I am investing in the USA and I believe has far better returns than available here as you can now get mortgages. It makes sense – high AUD and buying places up to 70% off. Also – no STAMP DUTY. However, that said, you still need your own house here and need to do a lot of research yourself. I would keep away from Detroit and upper NY state e.g. Rochester as too many vacant and old properties. I usually buy places around 5-10 years old in good rental areas.
Have a look at Trulia and Zillow and read up on local real estate sites/magazines. CNBC has good information too.
Regards,
Steve
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